# Automakers adopting AI for vehicle development > Live situation record from CLSTR: https://clstr.news/situations/automakers-adopting-ai-for-vehicle-development > Updated: 2026-10-24T05:01:56.000Z. Sources: 24. Developments: 3. Major automotive manufacturers are integrating artificial intelligence to accelerate vehicle development cycles and increase competitiveness against Chinese manufacturers. General Motors is overhauling engineering processes to reduce development time from four or five years to approximately two years. The company is utilizing AI to analyze chemical combinations for battery development and plans to implement a centralized electrical architecture to lower costs. Additionally, GM is targeting the deployment of eyes-off autonomous driving technology on divided highways by 2028, starting with the Cadillac Escalade IQ. Hyundai Motor Group is implementing a group-wide AI strategy to reduce its development cycle from 43 months to 30 months. The group has established an AI Governance Task Force and an AI Ethics Committee, with over 70% of employees utilizing AI tools weekly. Mercedes-Benz is also moving to halve development time by implementing an AI system called PLM.AI, investing approximately 500 million euros to reduce the development cycle from 56 months to 29 months. This technology is expected to provide efficiency gains in engineering processes such as crash simulations. However, the company is currently navigating a profitability crisis, with its unadjusted return on sales for the automotive division dropping to 0.2 percent in the second quarter. This downturn is attributed to a declining market in China, high US tariffs, and geopolitical tensions. In response, Mercedes-Benz is implementing a major cost-cutting program in Germany involving staff reductions, voluntary redundancy packages, and stricter mobile work requirements, while also shifting production to lower-cost environments, such as moving Sprinter van production to Poland by the end of 2029. The economic strain has also impacted the supply chain, notably resulting in the insolvency of German supplier Aios. ## Claims - Aios, a Mercedes supplier, has filed for insolvency. (corroborated by 7 sources) - Approximately 300 jobs are at risk due to the Aios insolvency. (corroborated by 7 sources) - Mercedes-Benz is investing 500 million euros in AI technology. (corroborated by 2 sources) - The AI system aims to reduce vehicle development time from 56 months to 29 months. (corroborated by 2 sources) - Crash simulations could be reduced from two or three weeks to two hours using the new system. (corroborated by 2 sources) - The unadjusted sales return for the automotive division fell to 0.2 percent in the second quarter. (single source) - Mercedes-Benz plans to reduce the number of temporary workers in Germany by several thousand. (single source) - Mercedes-Benz and BMW, along with Volkswagen, saw a combined loss of 780,000 vehicle sales in the first nine months of the year. (single source) ## Timeline ### 2026-10-24: Mercedes-Benz implements AI strategy amid profitability crisis Mercedes-Benz is investing 500 million euros in AI to halve vehicle development times while implementing cost-cutting measures and restructuring to combat declining profits and Chinese competition. 18 sources. https://clstr.news/cluster/mercedes-benz-to-halve-vehicle-development-time-using-ai ### 2026-10-21: Hyundai Motor Group aims to reduce vehicle development time using AI Hyundai Motor Group aims to cut vehicle development time from 43 to 30 months through an AI-driven transformation strategy and a specialized governance task force. 3 sources. https://clstr.news/cluster/hyundai-motor-group-aims-to-reduce-vehicle-development-time-using-ai ### 2026-10-21: General Motors adopts AI to halve vehicle development time General Motors is implementing AI and centralized electrical architecture to cut vehicle development time in half and compete with Chinese automakers. 3 sources. https://clstr.news/cluster/general-motors-adopts-ai-to-halve-vehicle-development-time --- Cite as: Automakers adopting AI for vehicle development. CLSTR, https://clstr.news/situations/automakers-adopting-ai-for-vehicle-development